The African Development Bank (AfDB) has approved a $25 million equity investment for renewable energy projects across sub-Saharan Africa.
The investment will be channeled through the ARCH Africa Renewable Power Fund (ARPF) – a $250m private equity fund.
ARPF will provide equity for the development and construction of ten to 15 greenfield renewable energy projects in sub-Saharan Africa, adding approximately 533MW of installed energy generation capacity from renewable sources in the region, the company said.
The projects will focus on wind, solar PV, small to medium hydro, geothermal and biomass. They will also include grid connected independent power producers and decentralized energy projects.
ARPF will expand the pipeline of bankable energy projects in Africa, and complement and deepen the work of the Bank in this critical area. This is vital for economic growth, and to foster transition to low carbon across the continent,” said Vice President for Power, Energy, Climate Change and Green Growth, Amadou Hott
The projects will have economic benefits, creating 272 full time jobs and 5,320 part time jobs.